Salary Reality Check

MrRee_2

The self employed declare FAR less than they actually earn - we all know that.

Plumber may well declare £27,000 ..... I can guarantee it's nearer £150,000 (adding tax and NI to the cash payments received).

Take Dentists, most are self employed with their own little companies - pay their partners min wage - lease a Mercedes - pay just corporation tax - take a small wage (this is what is declared to surveys) ............... the majority are on £250,000+ for 30 hours a week - I know!

There are plenty others, of course ..... in my company most contractors are being paid £2,000 a day!

The stated average wage of £26,000 is laughable - as we all know - no-one can possibly live on that!

Graham_Devon

Joeskeppi wrote: »

Hah, yeah, or rather that's what they say they earn and thus pay tax on!

I would assume that this is derived from salaries, not self assessment. I.e. people who are employed plumbers.

As regards to self employment, I highly doubt the majority of self employed are committing tax fraud. Some will. However, I would think these people are in the minority. Some on here appear to make out anyone self employed in a trade is out there committing large amounts of fraud every day of the week.

A £27,000 income equates to earning £103 a day on a 5 day week, which seems entirely reasonable to me. I don't know why anyone thinks these people are all earning far more than this.

martinsurrey

MrRee wrote: »

Plumber may well declare £27,000 ..... I can guarantee it's nearer £150,000 (adding tax and NI to the cash payments received).

haha, £150k earnt on PAYE will net £90k, to earn that cash in hand you need to earn £246 a day, 365 days a year, and no one in thier right mind would pay £246 a day cash in hand! (well judging from your next comment, the mugs that run your company might)

MrRee wrote: »

There are plenty others, of course ..... in my company most contractors are being paid £2,000 a day!

£10k a week, or £500k a year, what industry and jobs are these contractors in?

black_taxi_2

I got my mortgage before I became self employed,but now they look at 4/5 years accounts and disposable income

black_taxi_2

plumber 150k declaring 27k ,surely something wrong with system there

Loughton_Monkey

Graham_Devon wrote: »

What about it's a couple with children and therefore 2 x average salaries cannot be earned as easy?

Does the point have any merit then?

It seems its always assumed on here that 2 adults buy and both earn average wages that can all go towards a house.

Nice if that's the case, but I'd suggest it's not the case for most, and therefore the OP's point has merit.

Don't agree. You are resorting to your usual negativity.

Firstly, you failed to comment about the higher salaries in the SE.

Secondly, you appear to think that there was a time when a young couple with children, already renting, with just one parent earning average salary, could simply buy a nice 2-bed house.

Your son, aged 20, has secured a decent shop assistant job and is earning average salary - as is his female colleague to whom he has become attached. They come to you explaining that they wish to make a 'life plan' between them and they ask for "Fatherly advice". I cannot believe you would suggest:

1. Get married.
2. Go out and rent a decent place to live.
3. Start the family immediately, and mother packs in the job just before birth.
4. Now start saving hard, and think about putting down a deposit and getting a mortgage to buy somewhere...

Home ownership never has, and never will, 'come with the milk'. It generally comes only after very careful planning, self sacrifice, avoidance of large overheads, and quite a bit of patience. Achieving it is mainly about choices.

Wouldn't a better 'advice' be along the lines of....

1. Continue courting, while both stay at home.
2. Save extremely hard. Enjoy all the 'free' things in life. Perhaps sacrifice expensive holidays....
3. When you have amassed something like a decent deposit and a bit more, go an get a mortgage on joint salaries.
4. Get married. Move in.
5. Continue working hard, saving hard.....
6. When finances permit, consider having children.... using childcare if necessary....

People who have made specific choices [or sometimes not even thought about it... just bumbling along letting things 'happen' without understanding consequences] simply do not deserve sympathy when they point to someone who made totally different choices and say "Why can't I afford what he can....?"

So the point has no merit whatsoever.

System

Graham_Devon wrote: »

As regards to self employment, I highly doubt the majority of self employed are committing tax fraud. Some will. However, I would think these people are in the minority. Some on here appear to make out anyone self employed in a trade is out there committing large amounts of fraud every day of the week.

Not large amounts but I personally doubt there's a single tradesman that hasn't done a job for friends or family for cash.

Maybe my opinion is based on my experience, whenever I get work done at home or to my car I get a friend to do it for cash unless it's a massive job or something that requires some kind of certificate.

Plumbers are the best people to know, I've had an electric shower replaced for a £20 note and a toilet cistern replaced for a 4 pack of Stella

kabayiri

martinsurrey wrote: »

haha, £150k earnt on PAYE will net £90k, to earn that cash in hand you need to earn £246 a day, 365 days a year, and no one in thier right mind would pay £246 a day cash in hand! (well judging from your next comment, the mugs that run your company might)



£10k a week, or £500k a year, what industry and jobs are these contractors in?[/QUOTE]
Oh, that question is easy.

They are ride designers in the Mr Ree Fantasy Island South Coast Theme Park.

Graham_Devon

Joeskeppi wrote: »

Not large amounts but I personally doubt there's a single tradesman that hasn't done a job for friends or family for cash.

Maybe my opinion is based on my experience, whenever I get work done at home or to my car I get a friend to do it for cash unless it's a massive job or something that requires some kind of certificate.

Plumbers are the best people to know, I've had an electric shower replaced for a £20 note and a toilet cistern replaced for a 4 pack of Stella

Oh I agree with that. But you are describing more favours here than a model of self employment.

I know a couple of self employed (and I am myself). One, a painter and decorator gets loads of jobs paid cash in hand. But heres the rub....he has a family to provide for. Not declaring that cash could see him serving a sentence. Why would people risk it?

I realise some of it goes on, but nothing like the sort of amounts suggested in this thread.

Loughton_Monkey

Joeskeppi wrote: »

....Plumbers are the best people to know, I've had an electric shower replaced for a £20 note and a toilet cistern replaced for a 4 pack of Stella

I had a water filter replaced for a pack of cigars....

All the water came through brown, and nicotine-stained.